Here was the news wrap from May 20. There wasn’t much going on that day but Trump and Powell did both speak later that evening. Here were the comments from Powell. He also said that it was premature to make judgement on trade & tariff impacts on path for monetary policy.
I think it’s entirely possible we leave Osaka with a mild escalation -something like expanded 10% tariffs – enough to scare both China & the Fed into more stimulus & a 50bps cut. Then walk it back in 2020 with a juiced economy. Same playbook as Iran/SA
The U.S. will not levy new tariffs on Chinese exports, Chinese state media said after bilateral talks between Donald Trump and Xi Jinping on the sidelines of the Group of 20 summit in Osaka.
The world’s two biggest economies have agreed to restart trade talks, Xinhua news said, adding that the two sides will have discussions on “specific” issues.
The two leaders met for the first time in nearly seven months on Saturday, again on the sidelines of a global meeting, in an attempt to turn the heat down on a boiling trade war.
Trump is angry at the trade imbalance between the two countries, and has imposed rounds of tariffs on goods the U.S. imports from China. China retaliated by raising tariffs.
As the bilateral meeting began, Xi said he is prepared to exchange his thoughts and that he hopes to set the direction of China-U.S. relations “based on coordination, cooperation and stability.”
He added, “cooperation and dialogue are better than friction and confrontation.”
Trump responded by saying, “It would be historic if we can do a fair trade deal.”
“This could be a very productive meeting,” he said. (more…)
